The coronavirus pandemic has come as a major shock to the global economic system and hence, it is no surprise that investors have been looking to invest in safer assets like gold. The price of gold has recorded impressive gains this year and as a consequence, gold stocks have also managed to record major gains. Many gold companies are also known for paying out handsome dividends. Here is a look at two dividend-paying gold stocks that investors could consider tracking.
Newmont Goldcorp Corporation
At this point, Newmont (NYSE:NEM) boasts of the biggest base of gold reserves in the entire industry. On top of that, the company is also involved with the exploration and production of lead, copper, lead, and silver. Its operations are spread across the United States and overseas.
However, the company is not standing still. Back in September, Newmont established a joint venture with Agnico Eagle Mines Limited for exploring the project in Anza. Other possible targets in Columbia are expected to be considered as well.
On the other hand, the Musselwhite Materials Handling and Tanami Expansion in Australia have also got the necessary funding. The two projects are currently ongoing. This has allowed Newmont to maintain an average per share dividend growth at 65% over the past three years.
In the third quarter this year, the company paid out dividends of $0.40 per share, which reflects a sequential rise of as much as 60%. That was made possible by a 256% year on year jump in free cash flow to $1.3 billion. The stock has gained 52.7% in 2020 so far.
Barrick Gold Corporation
On the other hand, the world’s biggest gold mining company Barrick Gold Corporation (NYSE:GOLD) could be another option for investors who are looking for high dividend-paying gold stocks. Its gold mining operations are spread across as many as 5 continents.
Recently, it was announced that Barrick signed an in-principle agreement with the Papua New Guinea government with regards to a partnership for operating the mine in Porgera.
Over the course of the last three years, the dividends paid out by Barrick have gone up a CAGR of 9.1%. In the third quarter, the company paid dividends of $0.09 a share, which reflects a sequential rise of 12.5%.
Free cash flow jumped by as much as 151% to hit $1.3 billion in the third quarter. The stock has delivered gains of 27% in 2020 so far and investors could do well to keep an eye on it.
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